If the government subsidizes an activity it believes is generates a positive externality and it really only produces an inframarginal positive externality then the subsidization will result in an overproduction of the activity in question

What are the factors that determine a buyer's purchasing decision?

What will be an ideal response?

Fractional reserve banking takes its name from the fact that: a. banks hold only a fraction of their reserves at the bank itself. b. banks keep only a fraction of total deposits on reserve

c. banks reserve only a fraction of their activity for lending. d. all of the above